Democrats take aim at TABOR, again

Yes, but: Facing an $850 million budget deficit, Democratic legislative leaders believe now is their moment to take action on TABOR to avoid deep cuts that would lead to reduced government services.

What they're saying: "It is time to modernize our outdated fiscal structure because our future shouldn't be bound by a 30-year-old formula that doesn't account for today's realities," House Speaker Julie McCluskie declared in her opening day remarks.

State of play: TABOR caps government spending increases based on inflation and population growth. But the cost of state services, particularly Medicaid, is rising at double the TABOR rate, lawmakers complain.

• Any excess revenue is refunded to taxpayers unless voters permit lawmakers to retain and spend the leftovers.
• Analysts say the refund totals $293 million for tax year 2025, with $108 million going back to taxpayers and the rest going to property tax relief.

What we're watching: Democrats are playing coy about how they will try to tweak TABOR, whether through new legislation or a ballot measure asking to spend millions more in tax revenue.

• Sen. Jeff Bridges (D-Greenwood Village) and the Colorado Education Association , the state's teachers union, floated an idea to raise the TABOR cap to increase K-12 education spending.

Flashback: Two recent ballot measures to allow more spending under the TABOR cap, Proposition CC in 2019 and Proposition HH in 2023, failed to win voter support.

• Likewise, a state House resolution in the 2025 session to file a lawsuit challenging TABOR's constitutionality didn't advance.

The other side: Republican lawmakers vowed to oppose the Democratic effort, citing TABOR's popularity with voters. "We're always going to defend the Taxpayer Bill of Rights," House GOP leader Jarvis Caldwell said.